Cash flow is the net amount of cash and cash-equivalents being transferred into and out of a business. At the most fundamental level, a company’s ability to create value for shareholders is determined by its ability to generate positive cash flows, or more specifically, maximize long-term free cash flow (FCF).

## AHC Free Cash Flow Analysis

Free cash flow, a measure commonly used by analysts to assess a company's profitability, represents the cash a company generates after accounting for cash outflows to support operations and maintain its capital assets.

The Free Cash Flow is calculated using a number of methods including using Operating Cash Flow. Following is the formula to calculate Free Cash Flow based on Operating Cash Flow.

`Free Cash Flow = Operating Cash Flow - Capital Expenditures`

Using above formula to calculate Free Cash Flow for Austco Healthcare Limited (AHC), the free cash flow value is 1.79M.

All amounts in AUD

Operating Cash
3.3M
Capital Expenditure
-1.51M
Free Cash Flow
1.79M

Austco Healthcare Limited has a positive free cash flow as per the latest annual Cash flow statement released by the company. Positive free cash flow is cruscial for the financial health of a company, which can be used to pay dividends, expand operations, and deleverage its balance sheet (i.e., reduce debt).

## AHC Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Austco Healthcare Limited (ASX:AHC).

30 Jun 202030 Jun 201930 Jun 201830 Jun 2017
Net Income2.5M637k1.19M-6.42M
Depreciation559k244k252k270k
Change To Netincome73k77k79k2.79M
Change To Account Receivables1.98M-636k-1.17M817k
Change To Liabilities-3.18M1.37M-1.16M1.18M
Change To Inventory1.5M-881k3.21M-1.16M
Change To Operating Activities-636k377k-397k-231k
Total Cash From Operating Activities3.3M1.42M2.03M-2.55M
Capital Expenditures-1.51M-1.34M-889k-120k
Total Cashflows From Investing Activities-1.51M-1.34M-880k572k
Net Borrowings-577k-378k-495k-889k
Other Cashflows From Financing Activities-141k-141k-141k-57k
Total Cash From Financing Activities2.78M-378k-495k2.06M
Effect Of Exchange Rate-66k-65k-66k-52k
Change In Cash4.5M-362k590k32k
Issuance Of Stock3.5M3.5M3.5M3.01M